Local Government Finance
The question
To ask the Secretary of State for Housing, Communities and Local Government, whether she has made an assessment of the potential merits of reforming the local government funding formula.
Answered by Jim McMahon
After years of delays to much needed fair funding reform, the Government will update and improve the approach to funding allocations within the Local Government Finance Settlement by redistributing funding to ensure that it reflects an up-to-date assessment of need and local resources.
This will start with a deprivation-based approach in 2025-26 with additional funding targeted to the places that need it most. Broader redistribution of funding will follow through a multi-year settlement from 2026-27.
We will be publishing a policy statement in late November, where we will set out our intentions for reform of the local government finance system.
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